When buying a new home and you already own one, is it better to rent or sell the first house?
Hi Christina - Your question is one that really depends on your own specific situation and the specifics of your objectives. Some considerations are as follows -
What is your income situation...can you afford both payments?
How much rent can you get and will that cover any existing mortgage payment?
What is your equity position in the existing home and how much profit would you make on the sale?
Will renting the existing home help you save money in taxes?
I would recommend that you think about the above questions and if you have a financial adviser, to speak with him/her. Hope that helps give some direction.
| 08.28.15 @ 03:37
Hi Christina. Chad has covered many of the pertinent areas you need to consider. Perhaps the biggest other question is whether you need the equity from your current home for the down payment/closing costs on the new home. If so, renting the old home isn't probably an option. You also need to examine your capability/motivation to be a landlord. Some folks love it, others don't. If you find maintaining your primary residence challenging, taking on a rental home in addition might not be your best bet. Hope that helps, Ted | 08.30.15 @ 05:16